Eurozone: Eurozone sentiment picks up
November 30, 2013
The Economic Sentiment Indicator (ESI) published by the European Commission picked up to 98.5 points in November, which was up from the 97.7 points recorded in October. The result came in above market expectations of 98.0 points and marked the seventh consecutive improvement in the index. The index is now at its highest level since August 2011 and has moved closer to its long-term average of 100 points.
Stronger economic sentiment was recorded in both the industry and services sectors, whereas it deteriorated in the other three categories (retail trade, construction and consumers). At a country level, the largest increases were seen in Belgium (+4.1 points) and Luxembourg (+4.0 points). Among the major economies in the region, sentiment improved in Italy (+1.9 points), Spain (+1.4 points) and Germany (+0.8 points), whereas it deteriorated in France (-0.9 points). Malta boasted the highest confidence level in the region in November with 110.1 points, followed by Germany, with 105.7 points.
FocusEconomics Consensus Forecast panelists see private consumption contracting 0.6% in 2013, which is unchanged over last month's projection. For 2014, panelists see consumption expanding 0.5%, which is also unchanged from last month's forecast.
Panelists expect investment to contract 3.4% in 2013, which is down 0.1 percentage points from last month's forecast. In 2014, panelists see investment rising 1.5%, which is also down 0.1 percentage points from last month's projection.
Author: Armando Ciccarelli, Head of Data Solutions